STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: December 9, 2020
COUNCIL DISTRICT(S): 3
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize (1) a second amendment to the conditional grant agreement for infrastructure construction related to the development of 116 single-family homes in West Dallas located on Singleton Boulevard with Greenleaf Ventures, LLC to (a) extend the completion date from December 31, 2020 to December 31, 2022, with two one-year extension options; and (b) lower the area median income (AMI) of 58 of the 116 units from 140% AMI to 120% AMI; and (2) execute any documents or other amendments as necessary to implement the changes, including the Deed Restrictions and Deed of Trust - Financing: No cost consideration to the City
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BACKGROUND
On May 13, 2015, City Council authorized a conditional grant agreement with Greenleaf Ventures, LLC to pay for a portion of the infrastructure construction cost for a single-family development for at least 58 homes in West Dallas located on Singleton Boulevard in an amount not to exceed $1,275,000.00, by Resolution No. 15-0862. The 2012 General Obligation Bond Funds were used for the development of 58 single-family homes to be sold to households at or below 140 percent of Area Median Family Income, on vacant land located in West Dallas on Singleton Boulevard. The overall development requires a total of 116 homes to be constructed.
In June 2018, Greenleaf Ventures, LLC, the developer, was granted an extension to the conditional grant agreement from October 30, 2017 to December 30, 2020, by Resolution No. 18-0832. The agreement was for infrastructure costs associated with the development of the lots to sell to a builder for the construction of the homes. Greenleaf Ventures, LLC is working with private developers to build homes in the subdivision. All lots are currently under contract with Lennar Homes for the actual construction of the homes on the above-referenced lots.
Greenleaf Ventures, LLC experienced delays due to unforeseen zoning and civil plans approvals, as well as the COVID-19 pandemic. The rezoning application was submitted September 29, 2017 and was not approved until 11 months later in October 2018. This process normally takes only 7 months. Also, development plans were submitted on February 25, 2019 and were not approved until October 2019. The 8 months that it took for approval normally takes 4 months, thus delaying the project more.
During the months of March through May of 2020 the developer experienced delays due to the COVID-19 pandemic because it caused builder commitments to be in question during that time. Despite delays, utility construction was completed in May 2020 and paving was completed in July 2020. Substantial completion is planned for October 2020 with home starts expected on November 1, 2020. The 58 income-qualified homes are expected to be completed by July 31, 2021.
City Council approval of this agenda item will authorize the City Manager to modify the conditional grant agreement with Greenleaf Ventures, LLC for this development agreement.
The conditional grant agreement was executed on May 13, 2015 with Greenleaf Ventures, LLC.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 13, 2015, City Council authorized a conditional grant agreement with Greenleaf Ventures, LLC for the infrastructure construction cost for a single-family development for at least 58 homes in West Dallas on Singleton Boulevard by Resolution No. 15-0862.
On June 13, 2018, City Council authorized an extension to the conditional grant agreement with Greenleaf Ventures, LLC from October 30, 2017 to December 30, 2020, by Resolution No. 18-0832.
The Housing and Homelessness Solutions Committee was briefed by memorandum on November 10, 2020.
FISCAL INFORMATION
No cost consideration to the City.
OWNER
Greenleaf Ventures, LLC
Victor Toledo, Co-owner
Kent Casey, Co-owner